BlackSky Technology (US:BKSY)2021-11-12 16:07Financial Data and Key Metrics Changes - For Q3 2021, revenue was $7.9 million, representing a 49% increase from Q3 2020 and an 8% growth over Q2 2021 [17] - Operating loss for Q3 2021 was $48.9 million, compared to a loss of $12.5 million in the prior year [18] - Net loss for Q3 2021 was $46.9 million, or $0.67 per diluted share, with significant portions attributed to non-cash stock compensation and transaction-related costs [18][19] - Year-to-date revenue for the first nine months of 2021 was $22.6 million, a 53% increase compared to the same period last year [19] Business Line Data and Key Metrics Changes - The defense and intelligence business saw increased demand, with imagery deliveries under a contract with the NRO increasing to 100% from Q2 to Q3 [7] - A new $30 million 5-year IDIQ contract was awarded by the National Geospatial Intelligence Agency for AI-enabled economic monitoring [7] - The commercial business is experiencing growing interest across various industries, with significant opportunities in mining, financial services, transportation, and construction [10][26] Market Data and Key Metrics Changes - The sales pipeline expanded to $2.5 billion, up from $1.7 billion earlier in the year, driven by growth in the U.S. Government, International, and Commercial sectors [25] - The company is seeing strong demand for high revisit imagery combined with AI-enabled analytics, particularly in the DNI sector [25] Company Strategy and Development Direction - The company aims to provide real-time global intelligence and has made significant progress in expanding its satellite constellation and AI-enabled SaaS platform [5][21] - A strategic commercial agreement with Palantir was established to accelerate the integration of BlackSky's solutions [8] - The company is focused on expanding its global sales force and reseller network to capture more market opportunities [11][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged delays in the start of new contracts and revenue ramp-up due to supply chain impacts from COVID-19 [13] - The revenue forecast for 2021 was revised down to a range of $30 to $34 million, despite strong operational execution [13][19] - Management remains optimistic about long-term growth opportunities, citing strong demand and recent contract awards as indicators of future success [14][21] Other Important Information - The company completed its business combination with Osprey, grossing $283 million to fund growth plans [5][17] - The expansion of the satellite constellation is on track, with plans to launch up to 4 more satellites by the end of the year, doubling current capacity [12][30] Q&A Session Summary Question: What are the COVID delays impacting new contracts? - Management indicated that supply chain impacts on existing contracts are the primary driver of delays, affecting delivery of components and near-term revenues [24] Question: Can you provide details on the expanded sales pipeline? - The pipeline growth is attributed to increased demand across all business aspects, particularly in the DNI sector [25] Question: Which industries are showing faster uptake in the commercial market? - Strong interest is noted from mining, financial services, construction, and transportation sectors [26] Question: How is the sales force expansion progressing? - The sales force has more than doubled since Q2, with efforts focused on both government and international sales [29] Question: What is the status of the satellite constellation? - The company plans to double its current capacity to a 12-satellite constellation by the end of the year [30] Question: Can you provide details on the NASA award? - The 5-year contract with NASA allows for annual purchases of multiple millions of dollars in imagery, with potential follow-on opportunities expected [31]